SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended December 31, 1999
--------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------------------ ------------------------
Commission file number 0-25538
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TECHE HOLDING COMPANY
------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Louisiana 72-128746
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. employer identification no.)
incorporation or organization)
211 Willow Street, Franklin, Louisiana 70538
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (318) 828-3212
---------------------
N/A
Former name, former address and former fiscal year,
if changed since last report.
Indicate by check T whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: February 7, 2000
Class 2,527,252
- ---------------------------------------- ------------------
$.01 par value common stock Outstanding Shares
<PAGE>
TECHE HOLDING COMPANY
FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 1999
INDEX
Page
Number
------
PART I - CONSOLIDATED FINANCIAL INFORMATION OF TECHE
HOLDING COMPANY
Item 1. Financial Statements 1
Item 2. Management's Discussion and Analysis of Financial 6
Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures about Market Risk 9
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Materially Important Events 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES
<PAGE>
TECHE HOLDING COMPANY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
At At
December 31, September 30,
1999 1999*
------------- --------------
(unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents ....................................... $ 12,349 $ 10,292
Certificates of deposit ......................................... -- --
Securities available-for-sale, at estimated
market value (amortized cost of $63,531 and $64,832) .......... 61,209 63,460
Securities held to maturity (estimated market value of $3,416) .. 3,416 --
Loans receivable, net of allowance for loan losses
of $3,545 and $3,537 .......................................... 349,013 342,986
Accrued interest receivable ..................................... 2,138 2,159
Investment in Federal Home Loan Bank stock, at cost ............. 4,716 4,229
Real estate owned, net .......................................... 223 178
Prepaid expenses and other assets ............................... 491 621
Premises and equipment, at cost less accumulated depreciation ... 10,275 10,340
--------- ---------
TOTAL ASSETS .............................................. $ 443,830 $ 434,265
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits ........................................................ $ 301,876 $ 303,084
Advances from Federal Home Loan Bank ............................ 93,066 78,682
Borrowings for common stock repurchase .......................... -- --
Advance payments by borrowers for taxes and insurance ........... 1,168 1,578
Accrued interest payable ........................................ 558 432
Accounts payable and other liabilities .......................... 759 1,504
Deferred income taxes ........................................... 285 285
--------- ---------
Total liabilities ......................................... 397,712 385,565
COMMITMENTS AND CONTINGENCIES ................................... --
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value, 10,000,000 shares
authorized; 4,233,350 shares issued ......................... 42 42
Preferred stock, 5,000,000 shares authorized;
none issued ................................................. -- --
Additional paid in capital .................................... 42,167 42,153
Retained earnings ............................................. 31,496 30,928
Unearned ESOP shares .......................................... (1,671) (1,754)
Unearned Compensation (MSP) ................................... (302) (390)
Treasury stock 1,688,000 and 1,496,000 shares, at cost ........ (24,105) (21,387)
Unrealized gain (loss) on securities available-for-sale, net of
deferred income taxes ....................................... (1,509) (892)
--------- ---------
Total stockholders' equity ................................ 46,118 48,700
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
CAPITAL ................................................ $ 443,830 $ 434,265
========= =========
</TABLE>
- ---------------------
* The consolidated balance sheet at September 30, 1999 has been taken from the
audited balance sheet at that date. See Notes to Unaudited Consolidated
Financial Statements.
<PAGE>
TECHE HOLDING COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
<TABLE>
<CAPTION>
For Three Months ended
December 31,
1999 1998
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans ....................................... $6,701 $6,669
Interest and dividends on investments ............................ 1,089 595
Other interest income ............................................ 38 156
------ ------
7,828 7,420
INTEREST EXPENSE:
Deposits ......................................................... 3,223 3,145
Advances from Federal Home Loan Bank ............................. 1,135 901
Other borrowed money ............................................. -- 100
------ ------
4,358 4,146
NET INTEREST INCOME ................................................ 3,470 3,274
PROVISION FOR LOAN LOSSES .......................................... 30 45
------ ------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES .................................................. 3,440 3,229
------ ------
NON-INTEREST INCOME:
Service charges and other ........................................ 1,204 1,078
Other income ..................................................... 74 19
------ ------
TOTAL NON-INTEREST INCOME .......................................... 1,278 1,097
------ ------
NON-INTEREST EXPENSE:
Compensation and employee benefits ............................... 1,614 1,405
Occupancy expense ................................................ 763 637
Marketing and professional ....................................... 261 188
Other operating expenses ......................................... 750 727
------ ------
Total non-interest expense ................................... 3,388 2,957
------ ------
INCOME BEFORE INCOME TAXES ......................................... 1,330 1,369
------ ------
INCOME TAXES ....................................................... 466 479
------ ------
NET INCOME ......................................................... $ 864 $ 890
------ ------
BASIC INCOME PER COMMON SHARE ...................................... $ 0.36 $ 0.32
====== ======
DILUTED INCOME PER COMMON SHARE .................................... $ 0.36 $ 0.32
====== ======
DIVIDENDS DECLARED PER COMMON SHARE ................................ $0.125 $0.125
====== ======
</TABLE>
See Notes to Unaudited Consolidated Financial Statements.
2
<PAGE>
TECHE HOLDING COMPANY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
For the Three Months
Ended December 31,
--------- ---------
1999 1998
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income .......................................................... $ 864 $ 890
Adjustments to reconcile net income to net cash provided by
operating activities:
Accretion of discount and amortization of premium on investments
and mortgage-backed securities ................................ (25) 3
Provision for loan losses ....................................... 30 45
Depreciation .................................................... 283 193
Accretion of deferred loan fees and other ....................... (17) (52)
Accretion of discounts on loans ................................. (16) (5)
Other items - net ............................................... 5 139
-------- --------
Net cash provided by (used in) operating activities ......... 1,124 1,213
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available for sale ........................... (1,995) (143)
Proceeds from maturities of investment securities available for sale 1,000 5
Principal repayments of mortgage-backed securities available for sale 2,321 3,630
Net loan repayments (originations) .................................. (6,024) 8,455
Investment in FHLB stock ............................................ (487) (56)
Net decrease in certificates of deposit ............................. -- 658
Purchase of premises and equipment .................................. (218) (650)
Purchase of securities held to maturity ............................. (3,416) --
-------- --------
Net cash provided by (used in) investing activities ............. (8,819) 11,899
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits ................................. (1,208) 7,825
Net increase (decrease) in FHLB advances ............................ 14,384 (1,648)
Net decrease in advance payments by borrowers for
taxes and insurance ............................................... (410) (610)
Dividends paid ...................................................... (296) (352)
Purchase of common stock for treasury ............................... (2,718) (6,161)
Borrowings under note payable agreement ............................. -- 6,767
-------- --------
Net cash provided by financing activities ....................... 9,752 5,821
-------- --------
NET INCREASE IN CASH .................................................. 2,057 18,933
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ........................ 10,292 10,680
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD .............................. $ 12,349 $ 29,613
======== ========
</TABLE>
See Notes to Unaudited Financial Statements.
3
<PAGE>
TECHE HOLDING COMPANY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - PRINCIPLES OF CONSOLIDATION
The consolidated financial statements as of and for the three month
period ended December 31, 1999 include the accounts of Teche Holding
Company (the "Corporation") and its subsidiary, Teche Federal Savings
Bank (the "Bank"). The Corporation's business is conducted principally
through the Bank. All significant intercompany accounts and
transactions have been eliminated in consolidation.
NOTE 2 - BASIS OF PRESENTATION
The accompanying consolidated financial statements were prepared in
accordance with instructions for Form 10-Q and, therefore, do not
include all information necessary for a complete presentation of
consolidated financial condition, results of operations, and cash flows
in conformity with generally accepted accounting principles. However,
all adjustments, consisting of normal recurring accruals, which, in the
opinion of management, are necessary for a fair presentation of the
consolidated financial statements have been included. The results of
operations for the period ended December 31, 1999 are not necessarily
indicative of the results which may be expected for the entire fiscal
year or any other period.
NOTE 3 - EARNINGS PER SHARE
Following is a summary of the information used in the computation of
basic and diluted income per common share for the three months ended
December 31, 1998 and 1997.
1999 1998
--------- ---------
Weighted average number of common
shares outstanding - used in computation
of basic income per common share ........... 2,410,790 2,777,340
Effect of dilutive securities:
Stock options .............................. -- 6,259
MSP stock grants ........................... 18,942 24,414
--------- ---------
Weighted average number of common
shares outstanding plus effect of dilutive
securities - used in computation of diluted
net income per common share ................ 2,429,732 2,808,013
========= =========
4
<PAGE>
NOTE 4 - COMPREHENSIVE INCOME
Comprehensive income includes net income and other comprehensive income
(loss) which, in the case of the Corporation, only includes unrealized
gains and losses on securities available-for-sale. Following is a
summary of the Corporation's comprehensive income for the three months
ended December 31, 1999 and 1998.
1999 1998
----- -----
Net income $ 864 $ 890
Other comprehensive income
(loss), net of tax (617) (92)
----- -----
Total Comprehensive Income $ 247 $ 798
===== =====
5
<PAGE>
TECHE HOLDING COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
GENERAL
The Corporation's total assets at December 31, 1999 and September 30, 1999
totaled $443.8 million and $434.3 million, respectively, an increase of $9.5
million or 2.2%.
Securities available-for-sale totaled $61.2 million at December 31, 1999, which
represents a decrease of $2.3 million or 3.5% as compared to September 30, 1999.
Securities held to maturity totaled $3.4 million at December 31, 1999 and were
all purchased during the current period.
Loans receivable totaled $349.0 million at December 31, 1999 which represented a
$6.0 million or 1.8% increase compared to September 30, 1999.
Total deposits, after interest credited, at December 31, 1999 were $301.9
million which represents a decrease of $1.2 million or 0.4% as compared to
September 30, 1999.
Advances increased $14.4 million or 18.7% as compared to the amount at September
30, 1999.
Stockholders' equity decreased to $46.1 million at December 31, 1999, from $48.7
million at September 30, 1999, primarily as a result of stock repurchased during
the quarter, cash dividends paid, and an unrealized loss on securities available
for sale, offset somewhat by retained earnings for the quarter. During the
quarter, the Corporation repurchased 192,000 shares at an average price of
$14.11 per share.
COMPARISON OF EARNINGS FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
Net Income. The Corporation had net income of $864,000 for the three months
ended December 31, 1999 as compared to net income of $890,000 for the three
month period ended December 31, 1998. Earnings for the three months ended
December 31, 1999 represent a decrease of $26,000 compared to 1998. This
decrease was primarily due to stock repurchases and expenses related to a new
branch office opened April 1999.
Total Interest Income. Total interest income increased by $408,000 or 5.5% to
$7.8 million for the three months ended December 31, 1999, from $7.4 million for
the three months ended December 31, 1998, due primarily to an increase in
consumer loan and investment balances. Interest income on loans increased
$32,000 to $6.7 million for the period ended December 31, 1999 from $6.7 million
for the period ended December 31, 1998. The average yield on loans decreased to
7.68% for the three months ended December 31, 1999 from 7.74% for the same
period in 1998, and the average yield on investment and mortgage-backed
securities increased to 6.26% for December 1999 from 6.07% for 1998.
Total Interest Expense. Total interest expense increased $212,000, or 5.1%, to
$4.4 million for the 1999 period from $4.1 million for the December 1998 period,
due primarily to an increase in average interest bearing liabilities, offset
somewhat by a decrease in average rates paid.
6
<PAGE>
Net Interest Income. Net interest income increased $196,000 for the three month
period ended December 31, 1999 as compared to the same period ended December 31,
1998 due to an increase in average consumer loan and investment balances, offset
somewhat by an increase in average deposits and FHLB advance balances.
Provision for Loan Losses. The provision for loan losses was $30,000 and $45,000
for the periods.
Management periodically estimates the likely level of losses to determine
whether the allowance for loan losses is adequate to absorb possible losses in
the existing portfolio. Based on these estimates, an amount is charged or
credited to the provision for loan losses and credited or charged to the
allowance for loan losses in order to adjust the allowance to a level determined
to be adequate to absorb anticipated future losses.
Management's judgment as to the level of losses on existing loans involves the
consideration of current and anticipated economic conditions and their potential
effects on specific borrowers, an evaluation of the existing relationships among
loans, known and inherent risks in the loan portfolio and the present level of
the allowance, results of examination of the loan portfolio by regulatory
agencies and management's internal review of the loan portfolio. In determining
the collectibility of certain loans, management also considers the fair value of
any underlying collateral.
Non-interest Income. Total non-interest income increased by $181,000 from
$1,097,000 in the three month period ended December 31, 1998 to $1,278,000 in
the three month period ended December 31, 1999. This increase is due primarily
to the increase of service fee income associated with increased demand account
volume as well as fee income generated from the sale of certain fixed-rate
mortgage loans originated for sale in the secondary market.
Non-interest Expense. Total non-interest expense increased by $431,000 over the
periods compared. This increase was due primarily to compensation and occupancy
expenses related to a new branch opened in April of 1999.
Gain on Sale of Securities. The Company had no gain on the sale of securities
during the periods.
Income Tax Expense. Income taxes remained relatively constant at about 35% of
income before income taxes.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Under current Office of Thrift Supervision ("OTS") regulations, the Bank
maintains certain levels of capital. On December 31, 1999, the Bank was in
compliance with its three regulatory capital requirements as follows:
Amount Percent
------ -------
(In thousands)
Tangible capital .................. $42,160 9.50%
Tangible capital requirement ...... 8,879 2.00%
------- -----
Excess over requirement ........... $33,281 7.50%
======= =====
Core capital ...................... $42,160 9.50%
Core capital requirement .......... 17,785 4.00%
------- -----
Excess over requirement ........... $24,402 5.50%
======= =====
Risk based capital ................ $45,220 17.25%
Risk based capital requirement .... 19,557 8.00%
- ----------------------------------- ------- -----
Excess over requirement ........... $25,663 9.25%
=================================== ======= =====
Management believes that under current regulations, the Bank will continue to
meet its minimum capital requirements in the foreseeable future. Events beyond
the control of the Bank, such as increased interest rates or a downturn in the
economy in areas in which the Bank operates could adversely affect future
earnings and as a result, the ability of the Bank to meet its future minimum
capital requirements.
The Bank's liquidity is a measure of its ability to fund loans, pay withdrawals
of deposits, and other cash outflows in an efficient, cost effective manner. The
Bank's primary source of funds are deposits and scheduled amortization and
prepayment of loan and mortgage-backed securities principal. The Bank has also
borrowed funds from the Federal Home Loan Bank of Dallas ("FHLB") and other
sources. As of December 31, 1999, FHLB borrowed funds totaled $93.1 million.
Loan payments, maturing investments and mortgage-backed security prepayments are
greatly influenced by general interest rates, economic conditions and
competition.
The Bank is required under federal regulations to maintain certain specified
levels of "liquid investments," which include certain United States government
obligations and other approved investments. Current regulations require the Bank
to maintain liquid assets of not less than 4% of its net withdrawable accounts
plus short term borrowings. Those levels may be changed from time to time by the
regulators to reflect current economic conditions. The Bank has maintained
liquidity in excess of regulatory requirements. Furthermore, from time to time,
the Bank utilizes FHLB advances to the extent necessary to maintain its
liquidity.
8
<PAGE>
YEAR 2000
Like many financial institutions, we rely on computers to conduct our business
and information systems processing. Industry experts were concerned that on
January 1, 2000, some computers might not be able to interpret the new year
properly, causing computer malfunctions. Some banking industry experts remain
concerned that some computers may not be able to interpret additional dates in
the year 2000 properly. We have operated and evaluated our computer operating
systems following January 1, 2000 and have not identified any errors or
experienced any computer system malfunctions. We will continue to monitor our
information systems to assess whether our systems are at risk of misinterpreting
any future dates and will develop appropriate contingency plans to prevent any
potential system malfunction or correct any system failures. The Company has not
been informed of any such problem experienced by its vendors or its customers,
nor by any of the municipal agencies that provide services to the Company.
Nevertheless, it is too soon to conclude that there will not be any problems
arising from the Year 2000 problem, particularly at some of the Company's
vendors. The Company will continue to monitor its significant vendors of goods
and services with respect to Year 2000 problems they may encounter as those
issues may effect the Company's ability to continue operations, or might
adversely affect the Company's financial position, results of operations and
cash flows. The Company does not believe at this time that these potential
problems will materially impact the ability of the Company to continue its
operations, however, no assurance can be given that this will be the case.
The expectations of the Company contained in this section on Year 2000 are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and involve substantial risks and uncertainties
that may cause actual results to differ materially from those indicated by the
forward looking statements. All forward looking statements in this section are
based on information available to the Company on the date of this document, and
the Company assumes no obligation to update such forward looking statements.
Impact of Inflation
The consolidated financial statements of the Corporation and notes thereto,
presented elsewhere herein, have been prepared in accordance with GAAP, which
require the measurement of financial position and operating results in terms of
historical dollars without considering the change in the relative purchasing
power of money over time due to inflation. The impact of inflation is reflected
in the increased cost of the Corporation's operations. Unlike most industrial
companies, nearly all the assets and liabilities of the Corporation are
financial. As a result, interest rates have a greater impact on the
Corporation's performance than do the effects of general levels of inflation.
Interest rates do not necessarily move in the same direction or to the same
extent as the prices of goods and services.
Quantitative and Qualitative Disclosure About Market Risk
There have been no material changes from the information regarding market risk
disclosed under the heading "Asset and Liability Management" in the
Corporation's Annual Report for the year ended September 30, 1999.
9
<PAGE>
Additional Key Operating Ratios
At or For the Three Months
Ended
December 31,
---------------------
1999(1) 1998(1)
------- -------
(Unaudited)
Return on average assets 0.79 0.86%
Return on average equity 7.32 6.81
Average interest rate spread 2.76 2.63
Nonperforming assets to total assets 0.22 0.21
Nonperforming loans to total loans 0.22 0.26
Average net interest margin 3.31 3.31
Tangible book value per share $18.12 $17.26
- ---------------
(1) Annualized where appropriate.
10
<PAGE>
TECHE HOLDING COMPANY AND SUBSIDIARIES
PART II
ITEM 1. LEGAL PROCEEDINGS
Neither the Corporation nor the Bank was engaged in any legal
proceeding of a material nature at December 31, 1998. From
time to time, the Corporation is a party to legal proceedings
in the ordinary course of business wherein it enforces its
security interest in loans.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3.1 Articles of Incorporation of Teche Holding Company*
3.2 Bylaws of Teche Holding Company*
4.0 Stock Certificate of Teche Holding Company*
10.1 Form of Teche Federal Savings Bank Management Stock Plan**
10.2 Form of Teche Holding Company 1995 Stock Option Plan**
10.3 Employment Agreement with Patrick O. Little
11.0 Statement regarding computation of earnings per share
(see Note 14
to the Notes to Consolidated Financial Statements in
the Annual Report)
13.0 Annual Report to Stockholders for the fiscal year ended
September 30, 1999
21.0 Subsidiary of the Registrant
(see "Item 1 Business - Subsidiary Activity" herein)
23.0 Independent Auditors' Consent 27.0 Financial Data
Schedule***
(Footnotes on next page.)
11
<PAGE>
- ----------------
* Incorporated herein by reference into this document from the Exhibits
to Form S-1, Registration Statement, initially filed with the
Commission on December 16, 1994, Registration No. 33-87486.
** Incorporated herein by reference into this document from the Exhibits
to the Registrant's Form 10-K for the fiscal year ended September 30,
1995, filed with the Commission.
*** Only in electronic filing.
(b) Reports on Form 8-K
None.
12
<PAGE>
TECHE HOLDING COMPANY AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TECHE HOLDING COMPANY
Date: February 14, 2000 By: /s/Patrick O. Little
--------------------------------------
Patrick O. Little
President and Chief Executive Officer
(Principal Executive Officer)
Date: February 14, 2000 By: /s/J. L. Chauvin
--------------------------------------
J. L. Chauvin
Senior Vice President and
Chief Financial Officer
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 11,828
<INT-BEARING-DEPOSITS> 521
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 61,209
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 352,558
<ALLOWANCE> 3,545
<TOTAL-ASSETS> 443,830
<DEPOSITS> 301,876
<SHORT-TERM> 69,371
<LIABILITIES-OTHER> 2,770
<LONG-TERM> 23,695
0
0
<COMMON> 42
<OTHER-SE> 46,076
<TOTAL-LIABILITIES-AND-EQUITY> 443,830
<INTEREST-LOAN> 6,701
<INTEREST-INVEST> 1,089
<INTEREST-OTHER> 38
<INTEREST-TOTAL> 7,828
<INTEREST-DEPOSIT> 3,223
<INTEREST-EXPENSE> 4,358
<INTEREST-INCOME-NET> 3,470
<LOAN-LOSSES> 30
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 3,388
<INCOME-PRETAX> 1,330
<INCOME-PRE-EXTRAORDINARY> 1,330
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,330
<EPS-BASIC> .36
<EPS-DILUTED> .36
<YIELD-ACTUAL> 2.76
<LOANS-NON> 796
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,537
<CHARGE-OFFS> 26
<RECOVERIES> 3
<ALLOWANCE-CLOSE> 3,545
<ALLOWANCE-DOMESTIC> 3,545
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
